UPDATE: Brean Capital Reiterates Buy Rating, Lowers PT on DIRECTV on Strong Capital Returns
In a report published Friday, Brean Capital reiterated its Buy rating on DIRECTV (NASDAQ: DTV), but lowered its price target from $62.00 to $60.00.
Brean Capital noted, “Continued strong capital returns should offset Latin American headwinds. DirecTV alternatively pleased and disappointed investors yesterday, reporting a solid 4Q12 and announcing a $4 billion buyback, larger than the $3 billion expected by investors, in the morning, then guiding down 2013 expectation on its late afternoon earnings call, due to a larger than expected impact from the Venezuelan devaluation. We are lowering our estimates for 2013 to be in-line with the company's diminished outlook, and trimming our 2013 YE price target to $60 from $62, as a result. However we are maintaining our Buy rating. With its $4 billion buyback, we believe DirecTV has by far the strongest capital return story of the group in 2013, and even with the reduction in our 2013 outlook, revenue and OPBDA growth is still expected to outpace its peers, factors which we believe will override concerns about the company's Latin America exposure.”
DIRECTV closed on Thursday at $50.21.
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